Policy status:Ended
Date Effective:2008
Date Amended:


Date Ended:2017 (March 31st)
Policy Type:Economic Instruments>Fiscal/financial incentives
Policy Target:Bioenergy>Biofuels for transport
Policy Sector:Transport
Agency:Natural Resources Canada
URL:http://Renewable Fuels Strategy:
Funding:Up to CAD 1.5 billion over 9 years

The Government of Canada is committed to expanding the production and use of renewable alternatives to gasoline and diesel, such as ethanol and biodiesel. They can diversify our energy mix and contribute to reductions in greenhouse gas emissions, while at the same time providing new opportunities for the agricultural sector. The ecoENERGY for Biofuels Program is a key component of the renewable fuels strategy, and provides up to CAD 1.5 billion over nine years to encourage investment in the biofuels industry and to boost Canada’s capacity to produce renewable fuels. The Program offers operating incentives to producers of renewable alternatives to gasoline and diesel, based on production levels. From the CAD 1.5 billion, an amount of CAD 500 million is reserved for projects producing renewable alternatives to diesel.

Financial incentives are provided for the number of litres produced in Canada and sold, based on fixed declining incentive rates established by the Program and as agreed upon in each Contribution Agreement.

Incentives will be calculated separately for renewable alternatives to gasoline and diesel by taking into consideration eligible sales and incentive rate.


On December 14, 2009, the ecoENERGY for Biofuels Program implemented six changes to ensure that the program operates as effectively as possible to meet its renewable fuel targets. These changes are intended to provide more predictable and stable payments for renewable fuel production and to ensure that the Program supports the most viable projects leading to long term sustainable growth of the industry.

Last modified: Tue, 09 May 2017 17:03:35 CEST